As the urban population is increasing, the communal/municipal hard waste and drained sludge have increased their value over the last years. The ecological pollution which is the consequence of such waste has become a problem in a society which interrupts urban development, especially in the major cities of the countries which are in transition. For that very reason it is important to find a solution so that this waste is efficiently re-used so that its influence over the environment is reduced. The efficient and reliable waste management is the pre-requisite for the development of urban economy. The goals of decreasing the costs of service can be contrary to the goals of protecting the environment. In order to define the adequate costs it is very important to secure the complete and reliable information about the sources of waste, amounts of it and what ingredients such waste contains. It is important to ask about the dynamics of economic development and waste origin. The waste production of a certain amount in Serbia equals around 50% of waste production in European developed countries, whereas GDP is around 10% of their GDP. On the basis of the data obtained during this research, the economic analysis of costs of various kinds of waste is conducted. Given the market research and the available amount of organic waste, the proposals for organic waste are given which will create an optimal solution and satisfy both aspects of economic well-being and the environmental protection.